Steel Dynamics, Inc. (NASDAQ:STLD) Receives Consensus Rating of “Moderate Buy” from Brokerages

Shares of Steel Dynamics, Inc. (NASDAQ:STLD) have been assigned an average recommendation of “Moderate Buy” from the twelve analysts that are covering the firm, MarketBeat Ratings reports. One investment analyst has rated the stock with a sell rating, four have given a hold rating, six have given a buy rating and one has issued a strong buy rating on the company. The average 12 month price target among brokers that have issued ratings on the stock in the last year is $224.6364.

Several analysts have weighed in on the company. JPMorgan Chase & Co. lifted their price objective on Steel Dynamics from $192.00 to $205.00 and gave the company a “neutral” rating in a research report on Tuesday, April 14th. BMO Capital Markets increased their target price on Steel Dynamics from $195.00 to $240.00 and gave the stock an “outperform” rating in a research report on Wednesday, April 22nd. Bank of America cut Steel Dynamics from a “buy” rating to a “neutral” rating and set a $250.00 target price for the company. in a research note on Thursday, April 30th. Weiss Ratings upgraded Steel Dynamics from a “hold (c)” rating to a “buy (b-)” rating in a research report on Wednesday, April 29th. Finally, Wells Fargo & Company upped their price target on Steel Dynamics from $235.00 to $293.00 and gave the stock an “overweight” rating in a research note on Thursday, June 4th.

Insider Buying and Selling at Steel Dynamics

In other news, Director Kenneth W. Cornew sold 5,000 shares of the company’s stock in a transaction dated Thursday, April 23rd. The shares were sold at an average price of $224.87, for a total value of $1,124,350.00. Following the sale, the director directly owned 31,299 shares of the company’s stock, valued at $7,038,206.13. This represents a 13.77% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, SVP Richard A. Poinsatte sold 2,300 shares of the stock in a transaction dated Tuesday, May 12th. The stock was sold at an average price of $234.11, for a total transaction of $538,453.00. Following the completion of the transaction, the senior vice president owned 28,618 shares of the company’s stock, valued at approximately $6,699,759.98. The trade was a 7.44% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 22,125 shares of company stock valued at $5,438,227 over the last 90 days. 6.60% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Steel Dynamics

Several large investors have recently made changes to their positions in STLD. Prosperity Bancshares Inc purchased a new stake in shares of Steel Dynamics in the 4th quarter worth approximately $25,000. MV Capital Management Inc. purchased a new position in Steel Dynamics during the fourth quarter valued at $27,000. Sound Income Strategies LLC raised its stake in Steel Dynamics by 1,500.0% during the fourth quarter. Sound Income Strategies LLC now owns 160 shares of the basic materials company’s stock valued at $28,000 after buying an additional 150 shares during the last quarter. Cedar Mountain Advisors LLC bought a new stake in Steel Dynamics in the first quarter worth $31,000. Finally, DV Equities LLC purchased a new stake in shares of Steel Dynamics in the fourth quarter worth $33,000. 82.41% of the stock is currently owned by hedge funds and other institutional investors.

Steel Dynamics Trading Up 1.0%

Shares of STLD stock opened at $269.80 on Wednesday. The business has a 50-day moving average of $224.82 and a 200 day moving average of $194.42. The company has a debt-to-equity ratio of 0.46, a current ratio of 3.13 and a quick ratio of 1.33. Steel Dynamics has a 1-year low of $119.89 and a 1-year high of $280.49. The stock has a market capitalization of $39.05 billion, a PE ratio of 28.86, a P/E/G ratio of 0.57 and a beta of 1.50.

Steel Dynamics (NASDAQ:STLD) last issued its quarterly earnings data on Tuesday, April 21st. The basic materials company reported $2.78 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $2.79 by ($0.01). Steel Dynamics had a net margin of 7.22% and a return on equity of 15.54%. The company had revenue of $5.20 billion for the quarter, compared to analysts’ expectations of $5.39 billion. During the same period in the previous year, the firm posted $1.44 earnings per share. The firm’s revenue for the quarter was up 19.1% compared to the same quarter last year. As a group, sell-side analysts anticipate that Steel Dynamics will post 14.77 earnings per share for the current year.

Steel Dynamics Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, July 10th. Stockholders of record on Tuesday, June 30th will be issued a dividend of $0.53 per share. This represents a $2.12 dividend on an annualized basis and a dividend yield of 0.8%. The ex-dividend date is Tuesday, June 30th. Steel Dynamics’s payout ratio is 22.67%.

About Steel Dynamics

Steel Dynamics, Inc is a U.S.-based, diversified steel producer and metals recycler that operates an integrated network of mini-mills, finishing lines and fabrication facilities. Founded in 1993 and headquartered in Fort Wayne, Indiana, the company manufactures a broad range of steel products and provides downstream processing, coating and fabrication services to industrial customers. Its operations combine steelmaking using electric-arc furnaces with extensive metals recycling capabilities, allowing Steel Dynamics to convert scrap ferrous and nonferrous materials into finished steel products.

The company’s product portfolio includes flat-rolled steel (coiled and sheet products), structural steel and fabricated components, along with coated and painted steel used in consumer, industrial and construction applications.